Most consumers in Canada use instant payments and will continue to do so, but fraud remains a top concern.
A recent FICO report found that 91% of Canadians have sent a real-time payment, with 87% planning to maintain or increase usage over the next year. However, more than two-thirds would feel reassured if banks could better detect and block fraudulent transactions.
Roughly half of respondents said stronger fraud detection would be the most impactful step financial institution could take. Their concerns are likely amplified by the fact that most Canadians have received a communication they suspected was a scam. In addition, 44% of respondents reported that a friend or family member had fallen victim to fraud in the past year—a 5% increase year-over-year.
Global Counterparts
Fraud attacks have become increasingly prevalent worldwide, and criminals will exploit any available mechanism to them. However, real-time payments present an added challenge because account-to-account transfers are conducted in seconds and are often irrevocable.
The concerns of Canadian consumers were echoed by their global counterparts. FICO found that a growing number of consumers worldwide reported that their family and friends had been victims of real-time payment scams last year. In North America as a whole, 47% of individuals said their family and friends were scammed, a figure on par with the EU.
In Asia Pacific and Latin America, the percentage of respondents who said a friend or family member had been affected by instant payments fraud last year rose to 56% and 69%, respectively. These numbers were likely higher due to surging instant payments adoption in areas like Brazil and India.
Full Clarity
For all the fraud concerns that come with instant payments, the benefits outweigh the drawbacks. Real-time payment settlement allows both consumers and businesses to have full clarity on where their funds are and make better financial decisions.
While the adoption of instant payments is likely to increase, consumers’ fraud concerns are real and should be top of mind for financial institutions moving forward. According to the FICO study, 12% of respondents in Canada and 13% of respondents worldwide reported they would change banks if they were unhappy with their financial institutions’ fraud detection and mitigation solutions.
